Thailand: Inflation remains steady in June
July 1, 2013
In June, consumer prices added 0.15% over the previous month, which was down from the 0.24% rise recorded in May. The monthly increase was driven by higher prices for transport and communication as well as for recreation and education.
Despite the monthly rise, annual headline inflation remained steady at May's 2.3%, which was slightly below the 2.4% expected by the market and represents the lowest level seen since November 2009.
The core inflation index, which excludes energy and fresh food prices, rose 0.09% over the previous month, which was up from the 0.05% increase recorded in May. Meanwhile, annual core inflation remained steady at May's 0.9% rate. At the current level, core inflation still remains within the Central Bank's 0.5%-3.0% target range.
The Bank of Thailand projects inflation to average 3.4% this year, while the Ministry of Commerce sees inflation ranging between 2.8% and 3.4%. FocusEconomics Consensus Forecast panellists anticipate inflation to average 2.9% in 2013, which is down 0.1 percentage points from last month's Consensus. For 2014, panellists see average inflation also at 3.1%.